TERS Payment Received

Question

Hi 
 
 We have received our TERS payment so my question is the following: 
 
 In April we had and salary sacrifice and we allowed our employees to go into a negative leave. 
 1. So now with the refund from TERS are we as an employer allowed to use that TERS monies to credit this against the employees negative leave (which was almost like an loan to the employee at the time, we allow you to go into negative and pay you salary (no AOD only broadcast comms) and pay out the balance if any to the employee under the IRP5 code in rand value. If so how do you declare on payslip that portion was for leave but as part of the TERS refund? 
 
 2. Or Must we pay this exactly back to the employee as we received it per schedule under the IRP5 code stipulated, audit purpose? 
 
 Thank you 
 Annalize

Eloise Annandale · Answer

Good Day Annalize, You will need to confirm with the Department of Employment Labour how you are allowed to treat the TERS Payment. But, I believe you will need to process the TERS Income on the required IRP5 codes as per SARS to stay SARS compliant. 
 SARS added the IRP5 code 3724 for TERS payments in the latest BRS (which will be added in a future update). For now, the suggested line with IRP5 code 3602 (never taxable) can be used - the code can be changed when the code is made available in the software. 
 The payments can be made via the payroll, however the employees must receive the full amount paid by DoEL to te employer - no deductions should be taken from the TERS amount. 
 Some users prefer to run a Separate Payslip to reflect the TERS payment separate from other income and deductions (if any). A separate payslips allows a separate ACB and remuneration list as well.

Sage VIP Classic and Sage VIP Premier

TERS Payment Received

COMMUNITY

COMPANY

PARTNERS

SUPPORT & TRAINING